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Dollar Holds Steady Amid Hawkish Fed Remarks, Renewed Trade War Pressures

Guavy AI Editorial Team
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The US dollar has maintained its strength near a two-week high as markets continue to bet on a rate hike after Federal Reserve Chair Kevin Warsh's hawkish comments. The yen, on the other hand, slipped back through the closely watched 160-per-dollar level.

The Bank of Canada is set to address renewed trade war pressures in its upcoming rate decision. If policymakers don't gain confidence that inflation is heading down, they will have 'work to do'.

In related news, Germany's inflation rate is expected to reach +2.9% in August 2026, with consumer prices increasing by 0.2% in July 2026.

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